Rio de Janeiro Fiscal Momentum Fades After Extraordinary Revenue Peak; Interim Government Faces R$19B Deficit

Rio de Janeiro's fiscal performance deteriorated after a 2021 peak driven by one-off revenues from Cedae concession and oil sector, with cash reserves declining through 2025. The interim government, following former governor Cláudio Castro's resignation in March, now faces an initial projected deficit of nearly R$19 billion, signaling a structural fiscal challenge.